Apple says Pegatron claims are new "and we will investigate them immediately."

A Chinese labor watchdog group based in the United States has published a new report alleging serious violations by Pegatron Group, a Shanghai-based factory that contracts with Apple and two other subsidiaries, Riteng and AVY. Combined, the three factories employ over 70,000 people. (Pegatron, which also works with Dell, HP, and Microsoft, is not as well-known as a much larger Apple contractor, Foxconn.)

Pegatron and its subsidiaries, according to CLW, make "the iPhone for Apple and [are] currently manufacturing the soon-to-be-released cheap iPhone." CLW added that "due to the influx of new iPhone orders and an increased need for workers, the company recruited between 1,000 and 1,500 new workers each day in June. Pegatron’s workforce is expected to exceed 100,000 during the second half of the year."

None of the Pegatron factories in our investigations had effective grievance channels. Even when some sort of system was in place, relevant information was hurriedly passed by in new worker training. At AVY, when asked about the factory’s grievance channels, a team leader responded that there are no channels or mechanisms for workers to use. After cutting his finger on a work piece, our investigator asked his supervisor for leave so that he could get it treated, but the supervisor made the investigator wrap his finger in industrial-grade plastic tape and continue working.

The end of the report also details a first-person account of a day in the life of one worker. The unnamed worker writes:

At 10:30 a.m., I told my team leader that I wanted to go to the restroom and got his approval. I felt lucky about this after my experience yesterday in which I had been yelled at by the team leader when I asked to go to the restroom. He said, “No one else wants to go. Only you are such a pain!” Since workers in my department must always sit while working, this five-minute break is precious. A worker can stretch for a minute and have some water, since they are not allowed to bring water to their work post. One worker can apply to go to the restroom once or twice per day, but whether or not they get approval depends almost entirely on their team leader’s arbitrary judgment. And not every team leader is agreeable. According to factory regulations, except for the two meal breaks, one at noon and one in the evening, there are no mandatory breaks for workers to go to the restroom or have water.

Apple is committed to providing safe and fair working conditions throughout our supply chain. We lead the industry with far-reaching and specialized audits, the most transparent reporting and educational programs that enrich the lives of workers who make our products. Apple is the first and only technology company to be admitted to the Fair Labor Association, and we are dedicated to protecting every worker in our supply chain.

. . .

Their latest report contains claims that are new to us and we will investigate them immediately. Our audit teams will return to Pegatron, RiTeng and AVY for special inspections this week. If our audits find that workers have been underpaid or denied compensation for any time they’ve worked, we will require that Pegatron reimburse them in full.

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"Their latest report contains claims that are new to us and we will investigate them immediately. Our audit teams will return to Pegatron, RiTeng and AVY for special inspections this week. If our audits find that workers have been underpaid or denied compensation for any time they’ve worked, we will require that Pegatron reimburse them in full."

Yeah sure Apple, I'm sure this just started recently, no way you have been turning a blind eye. No sir, you manufacture in China because of their stellar employee rights and compensation, right?

Not an Apple-hater here. I'm sure it will come out that many other consumer-electronics companies are using vendors as bad as this one, just like it did the last time around. There's plenty of blame for all.

Now that I've said that; This will keep going on and on until these companies get it though their thick heads that the internet has created a massive PR cost to unscrupulous sourcing practices. How much extra would it add to the retail price per-unit to use a non-evil manufacturer? $50? They could put a big sticker on it that says 'NON-EVIL'. Don't tell me a company like Apple couldn't come up with an awesome marketing blitz to that effect.

Not an Apple-hater here. I'm sure it will come out that many other consumer-electronics companies are using vendors as bad as this one, just like it did the last time around. There's plenty of blame for all.

Now that I've said that; This will keep going on and on until these companies get it though their thick heads that the internet has created a massive PR cost to unscrupulous sourcing practices. How much extra would it add to the retail price per-unit to use a non-evil manufacturer? $50? They could put a big sticker on it that says 'NON-EVIL'. Don't tell me a company like Apple couldn't come up with an awesome marketing blitz to that effect.

don't think you understand the situation, no matter how much a company pays a manufacturer the manufacturer will seek a way to keep as much of it to themselves as they can.

they have no choice but to do audits and trust handshakes as the country doesn't have the laws the people need.

Regardless of who uses the factory, they should be ashamed. but the shareholders don't care, and thats all that matters. I don't care if it's apple, or anybody else for that matter. this is a disgrace. these people are slaves, i'm kind of reminded of those children slaving in the mines in temple of doom.

It's just, I don't even know what to say. This is basically what I point out to tall the anti union and pro "right to work" folks.

Not an Apple-hater here. I'm sure it will come out that many other consumer-electronics companies are using vendors as bad as this one, just like it did the last time around. There's plenty of blame for all.

Now that I've said that; This will keep going on and on until these companies get it though their thick heads that the internet has created a massive PR cost to unscrupulous sourcing practices. How much extra would it add to the retail price per-unit to use a non-evil manufacturer? $50? They could put a big sticker on it that says 'NON-EVIL'. Don't tell me a company like Apple couldn't come up with an awesome marketing blitz to that effect.

don't think you understand the situation, no matter how much a company pays a manufacturer the manufacturer will seek a way to keep as much of it to themselves as they can.

they have no choice but to do audits and trust handshakes as the country doesn't have the laws the people need.

for some reason when I read about these audits, I picture that scene from the movie sgt bilko when the colonel(whatever) does a walkthrough and they flip the gambling tables over to make it look like they actually work. except when these auditors leave the batons come out and they lift up shipping containers to reveal entire families and beat them back into a 70 hour work week.

I can only assume these companies pay their employees not in actual currency but maybe some form of token that is only redeemable at company owned stores. bringing the 1800's back in style.

Apple is probably the highest profile client of many for which this factory produces components and devices.

Let's be honest, the whole reason these companies (Apple, etc) hire out to the factories in China is the massive cost savings. These savings clearly stem from the abundant low cost labor - additional savings by not providing basic services and working these poor employees to exhaustion/suicide.

Outrage and bad PR may help to correct some of the injustices inflicted on the employees at these factories. However, so long as these devices continue to sell in the tens of millions to the majority of the oblivious western societies at large - workers at these sweat/slave factories will continue to suffer in pitiful work conditions.

Factories in China seem to have problems with working conditions. But it is only when Apple is involved, that these problems get a lot of publicity.

The positive thing is that Apple and authorities will follow up to improve things. Unfortunately, in other factories issues get much less attention and I assume less improvement.

The reason Apple gets targeted is that they have insane product markups / profit margins, plus they market to a customer base and have shareholders that are more likely to hold the company accountable.

These factors put pressure on Apple to actually make things better, where other companies, their shareholders and their customers just wouldn't care.

Regardless of who uses the factory, they should be ashamed. but the shareholders don't care, and thats all that matters. I don't care if it's apple, or anybody else for that matter. this is a disgrace. these people are slaves, i'm kind of reminded of those children slaving in the mines in temple of doom.

It's just, I don't even know what to say. This is basically what I point out to tall the anti union and pro "right to work" folks.

terrible.

This has nothing to do with unions or the lack thereof. Take a look at the shit unions pull, the people they put out of work, and the problems they cause, before holding them as a beacon of hope.

Im not going to put all the blame on apple for this But if Apple penalizes its manufacturers for every violation of human rights then Apple can hit the manufacturers where it hurts.Maybe it's already in their contracts/agreements and just needs to be enforced.Apple can justify the penalties by saying that this has caused irreparable damage to apple's goodwill and reputation.The question is does Apple leadership have the will to do it.

Apple will always manufacture products in factories that have deplorable working conditionsApple will always "investigate" and find no issue (here's a hint; don't give the factories weeks notice before you are coming).The press will focus on Apple even though every tech mfg does the same.

Apple will always manufacture products in factories that have deplorable working conditionsApple will always "investigate" and find no issue (here's a hint; don't give the factories weeks notice before you are coming).

Rinse and repeat for every new Apple product.

Reminds of of the South African police, where most "pursuits" of criminals are choreographed and fake.

The abusive nature of Chinese factory work is well known; what surprises me is that after all the flak they took over how long forcing Foxconn to clean up its act in factories it operated for them that Apple didn't insist on equivalent improvements in working conditions before signing major contracts with new companies.

This is basically what I point out to tall the anti union and pro "right to work" folks.

And any person with an IQ above 80 would point out that we live in a developed country with statutory limits on what is and isn't allowed. This isn't 1890 America anymore. They might also just say "Detroit."

If you are referring to China, hell yes unions would be helpful! People who want to help should be trying to create unions over there. The government isn't going to do anything, because it will stop the influx of international money, so unions are the only thing that have the ability to stop abuses.

As an aside, I've never understood liberal/leftist opposition to Right to Work legislation. They are constantly going on and on about choice, but apparently giving workers the ability to choose whether or not they'd like to join the union and have their paychecks garnished is one choice too many.

don't think you understand the situation, no matter how much a company pays a manufacturer the manufacturer will seek a way to keep as much of it to themselves as they can.

they have no choice but to do audits and trust handshakes as the country doesn't have the laws the people need.

I understand well enough. I'm not advocating *paying* the manufacturer more, I'm advocating using a different manufacturer entirely. Audits are a half-measure and numerous firms have sprung up specifically to help rotten manufacturers slip through with smoke-and-mirror tactics. Here's a couple links on the subject:

Once again, the media puts the blame on Apple for having bad working conditions instead of addressing the story for what it really is: shitty labor practices in China.

Or is the media putting Apple's feet to the fire for the ongoing practice of manufacturing its goods in Chinese factories known to have bad working conditions and shitty labor practices.

American consumers can't directly alter Chinese labor practices but they can certainly express their distaste for them by punishing companies that exploit those practices. ...But iPhones are neat so they won't.

Once again, the media puts the blame on Apple for having bad working conditions instead of addressing the story for what it really is: shitty labor practices in China.

Or is the media putting Apple's feet to the fire for the ongoing practice of manufacturing its goods in Chinese factories known to have bad working conditions and shitty labor practices.

American consumers can't directly alter Chinese labor practices but they can certainly express their distaste for them by punishing companies that exploit those practices. ...But iPhones are neat so they won't.

Pray tell, from what manufacturers should we be buying our smartphones? Our tablets? Laptops? TVs?

This is basically what I point out to tall the anti union and pro "right to work" folks.

And any person with an IQ above 80 would point out that we live in a developed country with statutory limits on what is and isn't allowed. This isn't 1890 American anymore. They might also just say "Detroit."

If you are referring to China, hell yes unions would be helpful. People who want to help should be trying to create unions over there. The government isn't going to do anything, because it will stop the influx of international money, so unions are the only thing that have the ability to stop abuses.

As an aside, I've never understood liberal/leftist opposition to Right to Work legislation. They are constantly going on and on about choice, but apparently giving workers the ability to choose whether or not they'd like to join the union and have their paychecks garnished is one choice too many.

And you can enjoy you're right to work(for less) in states like ohio where companies are now piss testing employees for substances that are LEGAL such as nicotine effectively invading personal lives

As an aside, I've never understood liberal/leftist opposition to Right to Work legislation. They are constantly going on and on about choice, but apparently giving workers the ability to choose whether or not they'd like to join the union and have their paychecks garnished is one choice too many.

Not saying I agree, necessarily, but I think the philosophical objection to Right to Work laws is rooted in the notion that unions can't actually exert meaningful power against industry unless workers are a cohesive, organized front.

Your union can't lobby effectively for higher pay or more bathroom breaks if there are unaffiliated workers that are willing to accept lower standards. And there usually are.

Once again, the media puts the blame on Apple for having bad working conditions instead of addressing the story for what it really is: shitty labor practices in China.

Or is the media putting Apple's feet to the fire for the ongoing practice of manufacturing its goods in Chinese factories known to have bad working conditions and shitty labor practices.

American consumers can't directly alter Chinese labor practices but they can certainly express their distaste for them by punishing companies that exploit those practices. ...But iPhones are neat so they won't.

Pray tell, from what manufacturers should we be buying our smartphones? Our tablets? Laptops? TVs?

By them from wherever you want, my friend. Part of living in the First World is exploiting everyone else. It may be unavoidable but we should all be cognizant of that fact. Your lifestyle is hurting someone, somewhere and ignoring that is ethically questionable, but common.

don't think you understand the situation, no matter how much a company pays a manufacturer the manufacturer will seek a way to keep as much of it to themselves as they can.

Foxconn had a profit of 3,000,000,000 US$ last year. Clearly they can afford to treat their employees better...

If Apple paid them double, they would have a profit of 6 billion next year, and not a single worker would be treated differently, I am sure.

This is NOT a money issue.

Yeah, paying them more won't do it. I think the only thing that would actually solve the problem (and I doubt Apple would ever do it) is to outright threaten their contracts with incredibly strict oversight clauses. For example: one American Apple employee per x number of workers that is physically present on the production floor, paid well enough to avoid bribes, and who has the authority to shut down production when the factory supervisors break the rules.

The factories run this way because they're allowed to. The Chinese government isn't putting a stop to it and the only thing that will force them to change is having the work orders stop.

Once again, the media puts the blame on Apple for having bad working conditions instead of addressing the story for what it really is: shitty labor practices in China.

Well, that's the crux. Folks in China wanting population control don't realize that the folks in charge want them to breed like rabbits. The more folks you have scrounging for the same jobs, the more you can treat them like slave labor.

Once again, the media puts the blame on Apple for having bad working conditions instead of addressing the story for what it really is: shitty labor practices in China.

Or is the media putting Apple's feet to the fire for the ongoing practice of manufacturing its goods in Chinese factories known to have bad working conditions and shitty labor practices.

American consumers can't directly alter Chinese labor practices but they can certainly express their distaste for them by punishing companies that exploit those practices. ...But iPhones are neat so they won't.

Pray tell, from what manufacturers should we be buying our smartphones? Our tablets? Laptops? TVs?

By them from wherever you want, my friend. Part of living in the First World is exploiting everyone else. It may be unavoidable but we should all be cognizant of that fact. Your lifestyle is hurting someone, somewhere and ignoring that is ethically questionable, but common.

So a vague non-answer, sprinkled with an intimation that I should feel guilt for having been born in the USA? Got it.

Once again, the media puts the blame on Apple for having bad working conditions instead of addressing the story for what it really is: shitty labor practices in China.

Or is the media putting Apple's feet to the fire for the ongoing practice of manufacturing its goods in Chinese factories known to have bad working conditions and shitty labor practices.

American consumers can't directly alter Chinese labor practices but they can certainly express their distaste for them by punishing companies that exploit those practices. ...But iPhones are neat so they won't.

Pray tell, from what manufacturers should we be buying our smartphones? Our tablets? Laptops? TVs?

By them from wherever you want, my friend. Part of living in the First World is exploiting everyone else. It may be unavoidable but we should all be cognizant of that fact. Your lifestyle is hurting someone, somewhere and ignoring that is ethically questionable, but common.

So a vague non-answer, sprinkled with an intimation that I should feel guilt for having been born in the USA? Got it.

Shrug. If you want to be a jerk about it that's cool; I've got other stuff to do. I'll just offer the- entirely subjective!- value judgement that exploiting people is wrong. Your mileage may vary.

As an aside, I've never understood liberal/leftist opposition to Right to Work legislation. They are constantly going on and on about choice, but apparently giving workers the ability to choose whether or not they'd like to join the union and have their paychecks garnished is one choice too many.

Not saying I agree, necessarily, but I think the philosophical objection to Right to Work laws is rooted in the notion that unions can't actually exert meaningful power against industry unless workers are a cohesive, organized front.

Your union can't lobby effectively for higher pay or more bathroom breaks if there are unaffiliated workers that are willing to accept lower standards. And there usually are.

There's also an objection that argues it creates a free rider problem. The non-union workers benefit from the union, but pay nothing to support it.